Gov. Mark Dayton on Tuesday will meet with Republican House Speaker Kurt Daudt to discuss how the state should address rising health insurance premiums for Minnesotans who purchase coverage on the individual market.  

Dayton last week proposed issuing rebates to an estimated 123,000 Minnesotans facing steep premium hikes next year but who make too much to qualify for federal tax credits. The DFL governor's proposal is the latest to emerge as political leaders react to rates changes announced in early October that will bring premium increases of more than 50 percent from the previous year.

Legislative leaders from both parties are putting forward plans they say will address the developing crisis. About 5 percent of state residents purchase health insurance through the individual market. Dayton’s proposal would reduce premiums by 25 percent for individuals or families that qualify.

A Dayton spokesman on Monday said Dayton's administration met Monday with Senate Minority Leader David Hann, R-Eden Prairie. Senate Majority Leader Tom Bakk, DFL-Cook, has also been in communication with Daudt, according to the statement. Since announcing his plan, Dayton has also talked with House Minority Leader Paul Thissen, DFL-Minneapolis.